Economic Growth & Economic Development – 80 MCQs

Economic Growth & Economic Development

Here are the 3 quizzes of Economic Growth & Economic Development consisting of 25 MCQs in each quiz. Kindly give your feedback in the comments section.

1-25 MCQs – Economic Growth & Economic Development

  1. Economic growth can be shown by
    1. An inward shift of the production possibility frontier
    2. A movement down the production possibility frontier
    3. An outward shift of the production possibility frontier
    4. A movement up the production possibility frontier
  2. To maximize growth without making a loss a firm should produce the highest output where
    1. Average revenue equals marginal cost
    2. Average revenue equals average cost
    3. Marginal revenue equals marginal cost
    4. Average cost equals marginal cost
  3. Economic growth can be measured by
    1. The CPI
    2. The CBI
    3. GDP
    4. MPC
  4. Potential growth measures
    1. The growth of the fastest economy in the world
    2. The fastest growth an economy has ever achieved
    3. The present rate of growth of an economy
    4. The rate of growth that could be achieved if resources were fully employed
  5. Economic growth can be seen by an outward shift of
    1. The Production Possibility Frontier
    2. The Gross Domestic Barrier
    3. The Marginal Consumption Frontier
    4. The Minimum Efficient Scale
  6. The socially optimal rate of growth is
    1. Zero
    2. Negative
    3. Where the marginal social cost benefit=the marginal social cost
    4. Total social costs are minimized
  7. When referring to the economic growth we normally refer to
    1. Growth in actual real per capita output
    2. Growth in potential real per capita output
    3. Growth in actual nominal per capita output
    4. Growth in potential real per capita output
  8. The neo-classical growth model says that:
    1. Poor countries should catch-up (or converge to ) with richer countries
    2. Higher savings (or rates of capital accumulation) cannot raise a country’s steady state growth rate
    3. The steady state growth rate of real output depends on the sum of the (exogenous) growth rates in population and technical progress
    4. All of the above
  9. The term economic growth is explained by
    1. Structural changes in the economy
    2. Increase in the per capita production
    3. Increase in the per capita income
    4. All of the above
  10. Which of the following scenarios explain economic development?
    1. Improvement in the distribution system
    2. Improvement in the technology
    3. Improvement in the production
    4. All of the above
  11. The main characteristic of an underdeveloped economy is that it has a
    1. State of deprivation among large proportions of the population
    2. High per capita income
    3. A large proportion of the about force is in the tertiary sector
    4. None of the above
  12. Scarcity of capital, unemployment, and technological backwardness are generally found in __ economies.
    1. Underdeveloped
    2. Developed
    3. Partly developed
    4. None of the above
  13. Which of the following is not an indicator of an economically developed nation?
    1. High levels of literacy
    2. Low death rate
    3. High per capita income
    4. A high proportion of labour in the primary sector
  14. Which of the following determinants of growth is a non-economic factor?
    1. Capital
    2. Natural resources
    3. Favourable legislation
    4. None of the above
  15. An increase in the national income of a country due to an increase in prices is known as
    1. Increase in the national income at base year prices
    2. Increase in the nominal national income
    3. Increase in the national income at constant prices
    4. Increase in the real income
  16. Which of the following characteristics are most likely found in developing countries?
    1. high population growth rates
    2. large number of people living in poverty
    3. very traditional methods of agricultural production
    4. all of the above
  17. What is the most typically used measure of a country’s level of development?
    1. Technological innovation
    2. Mobility
    3. Income
    4. Gender equity
  18. Social outcomes commonly used to measure a country’s level of human development include:
    1. Duration of hospital stays during pregnancy and nominal interest rate
    2. Infant mortality and adult literacy rate
    3. Average number of Facebook friends per user and other social media indicators
    4. Average years to graduation and admissions rates to universities
  19. What does the Gini coefficient measure?
    1. General efficiency of the economic system
    2. Rule of law
    3. Poverty
    4. Inequality
  20. Which of the following would typically be considered “human capital”?
    1. Gender and race
    2. Health and education
    3. Prime ministers and presidents
    4. Religious world views and trust
  21. Approaches to development that emphasize the environment often want to focus attention on which of the following?
    1. Sustainability
    2. Accountability
    3. Transparency
    4. Autonomy
  22. One example of an institution that has been hypothesized to cause development is:
    1. Collective action
    2. The family
    3. Property rights
    4. Parliamentary systems
  23. What do proponents of neoliberalism think about development?
    1. Development is basically random
    2. Development is a matter of culture
    3. Development is best accomplished using the free market
    4. Development is the state’s responsibility
  24. The author most known for arguing that economic development and social change arise from the interactions of social classes was:
    1. Thomas Friedman
    2. Hendrik Spruyt
    3. Milton Friedman
    4. Karl Marx
  25. How would social scientists characterize China’s approach to securing economic growth over the last several decades?
    1. Export-led growth
    2. Agro-export production
    3. Debt-dependent growth
    4. Import-substituting industrialization
0

Economic Growth & Economic Development (1-25)

Quiz with Answers

1 / 25

Economic growth can be shown by

2 / 25

To maximize growth without making a loss a firm should produce the highest output where

3 / 25

Economic growth can be measured by

4 / 25

Potential growth measures

5 / 25

Economic growth can be seen by an outward shift of

6 / 25

The socially optimal rate of growth is

7 / 25

When referring to economic growth we normally refer to

8 / 25

The neo-classical growth model says that:

9 / 25

The term economic growth is explained by

10 / 25

Which of the following scenarios explain economic development?

11 / 25

The main characteristic of an underdeveloped economy is that it has a

12 / 25

Scarcity of capital, unemployment, and technological backwardness are generally found in ________ economies.

13 / 25

Which of the following is not an indicator of an economically developed nation?

14 / 25

Which of the following determinants of growth is a non-economic factor?

15 / 25

An increase in the national income of a country due to an increase in prices is known as

16 / 25

Which of the following characteristics are most likely found in developing countries?

17 / 25

What is the most typically used measure of a country’s level of development?

18 / 25

Social outcomes commonly used to measure a country’s level of human development include:

19 / 25

What does the Gini coefficient measure?

20 / 25

Which of the following would typically be considered “human capital”?

21 / 25

Approaches to development that emphasize the environment often want to focus attention on which of the following?

22 / 25

One example of an institution that has been hypothesized to cause development is:

23 / 25

What do proponents of neoliberalism think about development?

24 / 25

The author most known for arguing that economic development and social change arise from the interactions of social classes was:

25 / 25

How would social scientists characterize China’s approach to securing economic growth over the last several decades?

26-50 MCQs – Economic Growth & Economic Development

  1. On which of the following economic measures does the United States lead the world?
    1. Lowest level of poverty
    2. Lowest level of inequality
    3. Highest overall GDP
    4. Highest GDP per capita
  2. Which of the following world regions includes many cases often cited by proponents of state-led development?
    1. Africa
    2. East Asia
    3. North America
    4. Latin America
  3. Which of the following terms overlaps closely with the concepts of social connections and trust?
    1. Social capital
    2. Human capital
    3. Physical capital
    4. Economic capital
  4. Jared Diamond’s argument about the causes of development focuses on structural factors beyond a country’s control, most notably:
    1. Geography
    2. Extractive institutions
    3. Culture
    4. Political leadership
  5. Economic development refers to
    1. Economic growth
    2. Economic growth plus changes in output distribution and economic structure
    3. Improvement in the well-being of the urban population
    4. Sustainable increases in Gross National Product
  6. The Physical Quality of Life Index (PQLI) combines three indicators. They are
    1. infant mortality, life expectancy and adult literacy rate
    2. crime rate, clean environment and quality of housing
    3. air pollution rate, water pollution rate and sanitation
    4. health, education and environment
  7. As economic development proceeds, income inequality tends to follow a(n) __ curve
    1. convex
    2. inverted U-shaped
    3. L-shaped
    4. S-Shaped
  8. According to Lewis’s model, the dual economy grows only when
    1. the modern sector increases its output share relative to the traditional sector
    2. agricultural sector uses modern equipment
    3. agricultural sector hires labor economically
    4. modern manufacturing sector is labor-intensive
  9. Dual economies are countries
    1. with double capital and labor
    2. with a modern manufacturing sector as well as traditional agriculture sector
    3. that specialize in labor-intensive products more than capital-intensive products
    4. with foreign-owned and domestically-owned capital
  10. The vicious circle theory states that
    1. growing government assistance create addiction to welfare programs
    2. low income levels create pressure for money creation
    3. low income levels create pressure for cheap imports
    4. low per capita income creates low savings that keep incomes low
  11. The Harrod-Domar growth model suggests that growth is
    1. directly related to savings and inversely related to the capital/output ratio
    2. directly related to the capital/output ratio and inversely related to savings
    3. indirectly related to savings and the capital/output ratio
    4. directly related to savings and the capital/output ratio
  12. Rostow’s economic stages are
    1. the preconditions for takeoff, the takeoff, the drive to maturity, and the age of creative destruction
    2. the traditional society, the preconditions for takeoff, the takeoff, the drive to maturity, and the age of high mass consumption
    3. the preconditions for consumption, the replication, the drive to maturity, and theage of high mass consumption
    4. the learning curve, the age of high mass consumption, post-takeoff, and the drive to maturity
  13. A value of 1 in the Gini index represents
    1. low inequality
    2. maximum inequality
    3. 10/10000% inequality
    4. 1% inequality
  14. The Lorenz curve shows
    1. patterns of poverty between developed and developing countries
    2. the change in GDP per capita over time
    3. the poorest income shares fall in the early stages of growth
    4. income concentration relative to a 45-degree line
  15. A period of rapid population growth between a preindustrial, stable population characterized by high birth and death rates and a later, modern, stable population marked by low fertility and mortality is known as
    1. demographic transition
    2. population maturity
    3. demobilizing population
    4. birth-death transformation
  16. A stationary population is when population growth is
    1. increasing at an increasing rate
    2. decreasing
    3. zero
    4. 100%
  17. To boost economic growth, the government is most likely to
    1. Increase interest rates
    2. Increase taxation rates
    3. Provide incentives to invest
    4. Provide incentives to save
  18. Economic growth can be seen by an outward shift of
    1. The Production Possibility Frontier
    2. The Gross Domestic Barrier
    3. The Marginal Consumption Frontier
    4. The Minimum Efficient Scale
  19. According to W.W. Rostow, the stages of economic growth are
    1. Two
    2. Three
    3. Four
    4. Five
  20. Most of the underdeveloped economies suffer from __ which does not let the rate of growth go up from a lower level.
    1. High population pressure
    2. High infant mortality
    3. High monetary mismanagement
    4. High level of technological unemployment
  21. The concept of economic growth is
    1. Identical with the concept of economic development
    2. Narrower than the concept of economic development
    3. Wider as compared to that of economic development
    4. Unrelated to the concept of economic development
  22. The rate of growth of an economy mainly depends upon
    1. The rate of growth of the labour force
    2. The proportion of national income saved and invested
    3. The rate of technological improvements
    4. All of the above
  23. The stationary state as envisaged by Adam Smith is marked by
    1. Low rate of profit
    2. Subsistence level wages
    3. High rents
    4. All of the above
  24. The ‘big-push’ strategy of development was first advocated by
    1. Paul N-Rosenstein-Rodan
    2. Simon Kuznets
    3. W.A, Lewis
    4. A.O.Hirshman
  25. Which growth model inspired the use of the capital-output ratio for development planning?
    1. The Harrod-Domar model
    2. Solow’s model
    3. Kaldor’s model
    4. Feldman’s model
Economic Growth & Economic Development
Economic Growth & Economic Development
0

Economic Growth & Economic Development (26-50)

Quiz with Answers

1 / 25

On which of the following economic measures does the United States lead the world?

2 / 25

Which of the following world regions includes many cases often cited by proponents of state-led development?

3 / 25

Which of the following terms overlaps closely with the concepts of social connections and trust?

4 / 25

Jared Diamond’s argument about the causes of development focuses on structural factors beyond a country’s control, most notably:

5 / 25

Economic development refers to

6 / 25

The Physical Quality of Life Index (PQLI) combines three indicators. They are

7 / 25

As economic development proceeds, income inequality tends to follow a(n) __________ curve

8 / 25

According to Lewis’s model, the dual economy grows only when

9 / 25

Dual economies are countries

10 / 25

The vicious circle theory states that

11 / 25

The Harrod-Domar growth model suggests that growth is

12 / 25

Rostow’s economic stages are

13 / 25

A value of 1 in the Gini index represents

14 / 25

The Lorenz curve shows

15 / 25

A period of rapid population growth between a preindustrial, stable population characterized by high birth and death rates and a later, modern, stable population marked by low fertility and mortality is known as

16 / 25

A stationary population is when population growth is

17 / 25

To boost economic growth, the government is most likely to

18 / 25

Economic growth can be seen by an outward shift of

19 / 25

According to W.W. Rostow, the stages of economic growth are

20 / 25

Most of the underdeveloped economies suffer from ____ which does not let the rate of growth go up from a lower level.

21 / 25

The concept of economic growth is

22 / 25

The rate of growth of an economy mainly depends upon

23 / 25

The stationary state as envisaged by Adam Smith is marked by

24 / 25

The ‘big-push’ strategy of development was first advocated by

25 / 25

Which growth model inspired the use of the capital-output ratio for development planning?

51-80 MCQs – Economic Growth & Economic Development

  1. Balanced growth implies
    1. Simultaneous development of a variety of activities, which support one another
    2. Equal allocation of resources to different sectors
    3. Different sectors growing at their natural rates of growth
    4. Uniform rate of growth of output over time
  2. Development with unlimited supplies of labour hypothesis was formulated by
    1. Gustav Ranis
    2. W.A.Lewis
    3. R. Nurkse
    4. J. Schumpeter
  3. Which of the following is not correctly matched?
    1. Big-push strategy: Paul N. Rosenstein- Rodan
    2. Balanced growth theory: R. Nurkse
    3. Development with unlimited supplies of labour: A-0. Hirschman
    4. Critical minimum strategy: Prof. Harvey Leibenstein
  4. With economic growth, the proportion of labor-force engaged in agriculture
    1. Increases
    2. Decreases
    3. Remains unaffected
    4. Changes in an uncertain manner
  5. Which one of the following was given a central place by Schumpeter in his theory of development?
    1. Capital accumulation
    2. Role of the Government
    3. Need for balanced growth
    4. Role of innovations
  6. Which of the following is not part of the Human Development Index?
    1. infant mortality
    2. life expectancy
    3. educational attainment
    4. GDP per capita
  7. The Gini coefficient is a technique frequently used to show
    1. variations in life expectancy
    2. income inequality
    3. differences in infant mortality
    4. the education gap
  8. A graphical technique that can be used to show the degree of inequality that exists between two variables are the
    1. Lorenz curve
    2. median-line bar graph
    3. Kuznets curve
    4. semantic differential profile
  9. Which of the following explains the term economic growth?
    1. Increase in per capita production
    2. Increase in per capita real income
    3. structural change in the economy
    4. all the above are right
  10. Economic development is characterized by
    1. Structural change in the economy
    2. Change in the occupational structure
    3. Both a and b
    4. None of the above
  11. Which of the following explains the term economic development?
    1. Improvement in the technology involved
    2. Improvement in production
    3. Improvement in distribution system
    4. All of the above
  12. Capital formation in underdeveloped countries is a major bottleneck. The reason can be
    1. Small size of market with no incentive for investment
    2. Low level of income
    3. Demonstration effect
    4. All of the above
  13. Which of the following about strategy of balanced growth is right?
    1. Simultaneous investment in all sectors
    2. All sectors are independent
    3. Both of the above
    4. None of the above
  14. Which of the following about strategy of unbalanced growth is right?
    1. Deliberate imbalance in favor of some sectors
    2. Simultaneous investment in all sectors
    3. Both of the above
    4. None of the above
  15. The concept of PQLI was developed by
    1. Morris D Morris
    2. UNO
    3. UNDP
    4. Oxford Poverty and Human Development Initiative
  16. The parameter/s of the PQLI is/are
    1. Life Expectancy Index
    2. Standard of living index
    3. Infant mortality rate
    4. A and C
  17. The concept of HDI was popularized by
    1. Morris D Morris
    2. Adam Smith
    3. Keynes
    4. Mahbub Ul Haq
  18. The component/s of HDI is/are
    1. Life expectancy index
    2. Infant mortality rate
    3. Population growth rate
    4. All the above
  19. The Multidimensional Poverty Index has been developed by
    1. The UNDP
    2. Oxford HDI
    3. The UNO
    4. Morris D Morris
  20. Which of the following is not a component of MPI?
    1. Health
    2. Education
    3. Occupation
    4. Standard of living
  21. Which of the following is not an indicator to measure MPI?
    1. Electricity
    2. Nutrition
    3. Cooking fuel
    4. Profession
  22. A multi-dimensional measure of poverty includes which of the following elements?
    1. Health level
    2. Education level
    3. Living standards
    4. All of the above
  23. Which of the following describes why income inequality is bad for economic development?
    1. Income inequality may threaten political stability, because people are dissatisfied withtheir economic situation and place blame on political authorities
    2. Income inequality reduces the pool of people with resources, such as education, to improve productivity
    3. Income inequality may increase distrust and deter commitment amongst people in the marketplace, making contracts enforcement difficult
    4. All of these answers
  24. Which of the following is a goal of economic development?
    1. Economic growth
    2. Reduction of poverty
    3. Improvement of human development (education, health, etc)
    4. All of these answers
  25. Marx believed that economic development should be led by
    1. religious leaders
    2. capitalists
    3. individual entrepreneurs
    4. the state
  26. The Romer model falls into a class of growth models in which the key determinants of economic growth are
    1. implicit in the model
    2. explicit in the model
    3. exogenously determined
    4. not known
  27. In the Solow model, if capital is in the steady-state, output
    1. will continue to grow
    2. is also in the steady state
    3. will continue to grow, but its rate of growth will slow down
    4. will decline, but its rate of growth will be positive
  28. For neo-classical theorists, economic under-development is the product of which of the following?
    1. Inappropriate economic policies and too much state interference in the economy
    2. Barriers against free trade
    3. Low prices for raw materials
    4. Both A and B
  29. For Rostow, which of the following constitute pre-conditions for take-off?
    1. Investment rate of at least 5% of GNP
    2. Universal primary education
    3. Development of one or more manufacturing sectors with a high growth rate
    4. Both A and B
  30. ‘Take off stage’ in an economy means
    1. steady growth begins
    2. economy is stagnant
    3. economy is about to collapse
    4. all controls are removed
0

Economic Growth & Economic Development (51-80)

Quiz with Answers

1 / 30

Balanced growth implies

2 / 30

Development with unlimited supplies of labour hypothesis was formulated by

3 / 30

Which of the following is not correctly matched?

4 / 30

With economic growth, the proportion of labor-force engaged in agriculture

5 / 30

Which one of the following was given a central place by Schumpeter in his theory of development?

6 / 30

Which of the following is not part of the Human Development Index?

7 / 30

The Gini coefficient is a technique frequently used to show

8 / 30

A graphical technique that can be used to show the degree of inequality that exists between two variables are the

9 / 30

Which of the following explains the term economic growth?

10 / 30

Economic development is characterized by

11 / 30

Which of the following explains the term economic development?

12 / 30

Capital formation in underdeveloped countries is a major bottleneck. The reason can be

13 / 30

Which of the following about strategy of balanced growth is right?

14 / 30

Which of the following about strategy of unbalanced growth is right?

15 / 30

The concept of PQLI was developed by

16 / 30

The parameter/s of the PQLI is/are

17 / 30

The concept of HDI was popularized by

18 / 30

The component/s of HDI is/are

19 / 30

The Multidimensional Poverty Index has been developed by

20 / 30

Which of the following is not a component of MPI?

21 / 30

Which of the following is not an indicator to measure MPI?

22 / 30

A multi-dimensional measure of poverty includes which of the following elements?

23 / 30

Which of the following describes why income inequality is bad for economic development?

24 / 30

Which of the following is a goal of economic development?

25 / 30

Marx believed that economic development should be led by

26 / 30

The Romer model falls into a class of growth models in which the key determinants of economic growth are

27 / 30

In the Solow model, if capital is in the steady-state, output

28 / 30

For neo-classical theorists, economic under-development is the product of which of the following?

29 / 30

For Rostow, which of the following constitute pre-conditions for take-off?

30 / 30

‘Take off stage’ in an economy means

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